ZFX: Bullish and bearish factors are testing investors’ nerve   

Thursday (April 23) Review

• the June contract for WTI crude futures jumped another 20%, as the market believes that major oil-producers may implement production cut as soon as possible, and the tension between the United States and Iran has also triggered buying interest. Global stock markets continue to rally due to the rebound in oil prices. However, investment bank Goldman Sachs warned that the key crude oil storage in Oklahoma is “nearing full capacity”, which may cause the WTI fall to negative territory once again.

• The initial jobless claims in the US last week fell for three consecutive weeks to 4.427 million, while the continuing claims jumped to the record high 15.976 million. As both figures were slightly better than expected, investors believe that the most severe situation may be over for the US labor market. In addition, the US Congress has passed the new economic stimulus plan, which further boosted risk appetite, that supporting the global stock market. However, a report from the WHO showed the failure of the clinical trial of “Remdesivir”. Sentiment turned to risk-off, so that all three Wall Street indexes retraced all the gain on Thursday, and closed mixed.

• The gold price rose due to the “decisive response” from Iran. Tension between the US and Iran is growing, which has stimulated safe-haven asset. In addition, it is reported that the Bank of Japan will launch an “unlimited QE” next week, supporting the uptrend of gold.

• The EU agreed to set up a massive recovery fund to tackle the impact of the coronavirus outbreak. But, the EU failed to reach any agreement so far. The uncertainty of the recovery fund was causing the euro under pressure.

• The global pandemic of new coronavirus remains severe, with more than 2.7 million confirmed cases worldwide and more than 190000 deaths.

ZFX analyst Jacob Leung said that, as has been mentioned, in the face of such unpredictable market conditions and “too much” news, High uncertainty makes the sentiment extremely sensitive. Factors such as oil price trends, pandemic progress, economic figures, international situation/tension, and the global economic policies continue to generate variables in the financial market. Investors should keep cautious and be aware of the risk management.

AUD / USD fundamentals or market sentiment – the rebound in oil prices helped the Aussie.

Support: 0.6350; 0.6330 Resistance: 0.6380; 0.6410

View: The Australian dollar may have correction due to the rapid move.

Recommendation: 0.6375 short, target 0.6350, stop loss 0.6395. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 0.6350 has been short, before reaching the target 0.6330, the stop loss is at 0.6365. (Stopped) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 515 pips

EUR / USD fundamentals or market sentiment – EU news hit the euro, ranging breakthrough.

Support: 1.0750; 1.0700 Resistance: 1.0800; 1.0840

View: The euro is volatile and the outlook is bearish.

Recommendation: short 1.0800, target 1.0780, stop loss 1.0815. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1.0810 has been long, first hit the target 1.0830. (Take profit) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 440 pips

GBP / USD fundamentals or market sentiment – ​​the Pound rebounded, but the trend is still volatile.

Support: 1.2330; 1.2300 Resistance: 1.2380; 1.2410

View: Sterling is under bounce back wave pattern, but still advisable to go short.

Recommendation: 1.2380 short, target 1.2355, stop loss 1.2400. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1.2360 has been short, first hit the target of 1.2330. (Take profit) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 415 pips

GOLD fundamentals or market sentiment- The tension in the Middle East triggered risk aversion and again supported the gold market.

Support: 1715; 1705 resistance: 1730; 1735

View: The gold market rose sharply, be aware if profit taking before the weekend.

Recommendation: short at 1730, target 1715, stop loss 1740. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: — (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: -42 USD

USOIL (WTI) fundamentals or market sentiment – Good news emerge, oil prices rebound continue.

Support: 17.50; 15.50 Resistance: 20.00; 21.00

View: The oil price broke further higher which was a positive pattern.

Recommendation: Differences in OTC quotes, and no recommendations are made at this time.

Position follow-up and profit and loss: —

Cumulative profit and loss: $ 9.8

US30 (Dow) fundamentals or market sentiment – ​​bullish and bearish news mixed, US stocks fluctuated.

Support: 23200; 22900 Resistance: 23600; 23850

View: The Dow broke the trendline, uptrend is now uncertain.

Recommendation: 23550 short, target 23400, stop loss 23700. (Pay attention to the OTC quotes may have differences) (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 23200 long, target 23400, stop loss 23000. (Pending) (Pay attention to the OTC quotes may have differences) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 0 points

Risk Warning: The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.